[size=12.000000pt]This empirical paper makes use of annual data for the United Kingdom duringthe year of 1960-2007 to probe into the link between government size and macro-economic growth. Our classical linear regression model indicates that adecreasing rate of government consumption share in GDP is good for growth,while a large public sector can give rise to a slower growth rate of GDP. Thepolicy lesson is to advocate a small government, which has a quite small share ofgovernment consumption in GDP.
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